PurEnergy Overview

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About PurEnergy

• We provide a full suite of asset management and financial

services on behalf of owners, lenders and other

stakeholders.

- Experienced across power generation technologies,

project structures (e.g., lease, GP/LP), and markets

and offtake types (PPAs, tolling arrangements,

merchant across ISOs).

• We are a subsidiary of NAES Corporation, the largest third-

party operator and service provider in the nation.

- NAES is a wholly owned subsidiary of ITOCHU

Corporation, one of the world’s largest corporations.

• PurEnergy’s currently provides services to 34 facilities

totaling more than 9.0 GW across the spectrum of

technologies.

PurEnergy is a veteran asset management firm with 20+ years’ experience managing and enhancing

power generation, transmission and other infrastructure facilities

Services Offered

• Construction oversight

• Asset management

• Financial services

• Restructuring / turnaround

• On-boarding & transition

support

• Regulatory compliance

• Sale/financing process support

• Decommissioning

Technologies / Sectors

• Coal

• Nat. gas (CT and CCGT)

• Biomass

• Hydro

• Wind

• Midstream oil & gas

• Materials recovery

• Other industrials

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Company history

• PurEnergy founded in 1995 with an initial focus on

remediation efforts for distressed cogeneration facilities.

• In early 2000’s the company expanded into managing and

optimizing non-distressed projects.

• After 2003 experienced significant growth as ownership of

projects increasingly shifted to financial entities.

• In 2016 PurEnergy was acquired by NAES Corporation, the

nation’s leading outside operator of power facilities.

• Today PurEnergy is a premier provider of asset management

and financial services to owners of power generation and

other infrastructure facilities

- Supported by the resources and experience of its

parent, NAES Corporation.

20+ years helping our

customers maximize value

from their assets

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Corporate overview

Itochu Corporation

- Japan-based international trading house

- Fortune 250 corporation, with annual revenues of US $145 billion

- Six major operational divisions specializing in textiles, metals/minerals, food, machinery, energy/chemicals and ICT/general products/real estate.

NAES Corporation

- Issaquah, WA-based provider of services to power and other industries- Over 3,500 employees, and more than 300 active clients

PurEnergy Management Services

- Syracuse, NY-based provider of asset management and financial services

to the power and other industries- 20+ years in business

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NAES portfolio companies

Asset management and financial

services for power generation and

other critical infrastructure assets

Construction, maintenance, repair

and modification services to power

generation and industrial facilities in

a union environment

Electrical engineering, industrial

electric installation and control

system design

Strategic and technical services for

energy, industrial, and public

infrastructure projects

Precision energy control and integration

management services to micro-grids, load-

serving entities and demand response

clients throughout North America.

General industrial fabricator and

contractor with more than 40 years

of experience working on highly

specialized, multi-faceted industrial

projects

In addition its core competence in power plant operations and energy solutions, NAES has a broad

service offering throughout the power, industrial and related industries via various subsidiary

companies.

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Asset management model

Owners

Operator

- O&M staffing and training

- Care, custody, and control

- EH&S and NERC compliance

- Maintenance management

- Inventory management

- Procurement, invoice

processing, and cost accting

- Responsible Official (RO)

Energy Manager

- Power marketing and

scheduling

- Fuel procurement, scheduling

and nominations

- Trade execution

- Trade collateral

- Settlements and

reconciliation

Third Party Support

- IT consultants

- Specialty consultants

- Actuarial

- Independent auditors

- Labor matters counsel

- Benefits counsel

Offtake

- For contracted facilities,

manage PPA., tolling

agreement or other offtake

- Understand value levers and

seek to maximize

Other Stakeholders

- Lenders

- Independent engineer

- Regulatory agencies

- Community members & organizations

Act as overall business manager:

- Manage all key parties

- Administer contracts

- Oversee other vendors

- Point of contact for stakeholders

- Provide financial services

Drive to increase value

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Asset management scope -- summary

Full complement of services throughout project lifecycle

Overall business managementBusiness management focused on maximizing

shareholder value

Construction / decom. oversight

Monitor all aspects of construction or

decommissioning, ensuring completion on time &

budget

Contract and vendor management

Administer owner's rights under project contracts

and ensure compliance. Manage operator to drive

cost and performance improvements.

Regulatory and external affairsMaintain regulatory compliance tracking system;

prepare & submit applications, notices, reports.

Administrative matters Maintain books & records; procure insurance; etc.

Financial services Financial services discussed on following page

Professional firms oversightManage outside law firms, accounting firms and

other service providers

Restructurings and other value

enhancement

Identify and implement value-creation initiatives;

e.g., renegotiate offtake agreements, restructure

debt, plant improvement projects

Litigation and financing/sale

process support

Support non-routine situations, such as litigation

and financing/sale processes

We allow owners to limit their

day-to-day involvement so they

can use their valuable internal

resources most effectively.

We can flexibly craft the exact scope to meet a client’s needs

Selected summary of asset management services

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Financial services scope -- summary

Bank accounts

Establish and administer all required

accounts; manage flow of funds in and

out of accounts.

Financial statements and reports

Prepare financial statements in

accordance with GAAP; compile

financial reporting, including actuals to

budget analyses

Accounting

Provide full accounting services, incl.

preparation of trial balances and

maintenance of general ledger;

implementation of accounting policies

Budgeting & forecastingPreparation of annual budget and period

forecasts

Tax servicesOversight of tax matters; preparation of

tax returns.

Treasury functionsInvestment and cash management

services

Billings & payables

Maintain billing and collections

procedures and render invoices;

implement and manage invoice approval

and payments process.

Audit oversightManage audit process; oversee third-

party audit firm.

We can provide financial

services as part of full asset

management responsibility,

or as a stand-alone service.

Scope can be tailored to meet client needs.

Selected summary of financial services

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Current projects

Name Type MW AM FS Owner State

Beaver Falls Gas 108 X X Starwood New York

Chambers Coal 262 X X Starwood New Jersey

Choctaw Coal 440 X X Various Mississippi

DCR Transmission T&D -- X Starwood California

Dighton Gas 185 X X Starwood Massachusetts

Forked River Gas 86 X X Hull Street New Jersey

Hampden/Coastal Resources Recycling -- X Fiberight Maine

Hartford/CDECCA Gas 65 X X Hull Street Connecticut

Harvest Pipeline Midstream -- X GE Texas

Hazleton Gas 158 X X Starwood Pennsylvania

Linden Power Gas 972 X GE New Jersey

Logan Coal 225 X X Starwood New Jersey

Lordstown Gas 940 X Various Ohio

Marcus Hook Gas 778 X X Starwood Pennsylvania

Middlesex Landfill 20 X Middlesex County New Jersey

Milford Gas 171 X X Starwood Massachusetts

Morgantown Coal 62 X X Starwood West Virginia

Nautilus Hydro 18 X Hull Street Massachusetts

NCA2 Gas 85 X Rockland Nevada

Parlin Gas 124 X GE New Jersey

Pasco Gas 121 X Rockland Florida

Pawtucket Gas 64 X X Hull Street Rhode Island

Pittsfield Gas 160 X X Hull Street Massachusetts

Plum Point Coal 680 X X Starwood Arkansas

Quail Run Gas 550 X X Starwood Texas

Rabun Gap Biomass 20 X X Rockland Georgia

Red Oak Gas 830 X Morgan Stanley New Jersey

Selkirk Gas 418 X X Alterna Capital New York

Shady Hills Gas 521 X X GE Florida

Shiprock Midstream -- X GE New Mexico

South Boston/ NOVEC Biomass 50 X NOVEC Virginia

Syracuse Gas 103 X X Starwood New York

Telogia Biomass 15 X X Glenfarne Telogia

Towantic Gas 805 X CPV Connecticut

34 projects representing

9.0 GW of power

generation capacity

AM = asset management services

FS= financial services

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Projects & offices

WA

OR

ME

NH

CT

VT

NY

PA

WV

VA

OH

KYNC

MI

WI

ILIN

IA

MN

SD

TN

GA

SC

ALMS

KSCO

NE

MT

WY

ID

NV

UTCA

AZ

FL

MO

MA

TX

OK

NM

LA

AR

ND

Coal

Natural gas

Renewable

Other

PurEnergy projects

Technology and geographic diversity

Nationwide coverage

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Systems & tools

We have in place a suite of software systems and proprietary management processes to ensure

compliance with regulatory, environmental and contractual requirements. For example:

Our processes

and tools have

been honed by

managing

projects

over 20+ years in

the business

Contract management

software

Software system tracks contract requirements & deliverables.

Reduced risks of missed dates & deliverables. SarbOx

compliant.

Regulatory and

environmental

compliance calendars

Detailed calendars for all regulatory & envtl deliverables, incl.

filings, notices, reports.

Transition checklists

Standard on-boarding checklist compiled over many years of

transitioning complex projects. Base template for project

transition.

Standard

redevelopment plans

Standard project redevelopment plan for identifying and

implementing value-enhancement opportunities. Starting point

for new projects.

Employee backup plansEach project assigned backup AMs and PCs to ensure no gap

in coverage due to vacations or unforeseen circumstances.

File management,

backup and security

Standard organizational structure for management, retention

and backup of information; automated backup software.

Internal skills database

Database of skills & experience possessed by members of our

team; can quickly find relevant experience when non-routine

questions arise

Action item lists

Zealously prepared, updated and shared with our clients. A

cornerstone of our drive to effectively manage and improve

projects under our care.

Financial services Can utilize all major financial software packages, incl. Great

Plains, Syteline and others.

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Our clients

• We are honored to count as our clients many of

the leading investment firms, project developers,

independent power producers and utility

companies in the industry.

• Many of our clients have been repeat customers for numerous years.

Selected client list:

Arclight

Caithness

Dominion Energy

EDF Trading North America

EIF

Fortress

GE Energy Financial Services

Glenfarne Group

Hull Street Energy

John Hancock

Leaf Clean Energy

Maxim Power

Middle River Power

Multitrade

Rockland Capital

San Diego Water Authority

Siemens

Starwood Energy Group

US Renewables Group

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Case study: Pittsfield Generating

• Negotiated settlement and buy-outs to free

Pittsfield from all steam host agreements

• Extracted maximum value from gas-supply

and gas-transportation agreements

• Identified 5MW of additional capacity and

renewed interconnect agreement to realize it

• Installed fogging overspray in one of the

turbines to add another 5MW of capacity

• Reduced station service cost to wholesale

rate through ISO program

• Renegotiated property taxes

• Optimized all plant operations

We Turned a $75M Exposure Into a $220M Profit for a Struggling Plant in Western Mass

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Case study: Goal Line LP

• Constructed a supplemental cooling

tower to increase capacity

• Maximized the capacity factor bonus

under the power purchase agreement

• Began cycling to optimize run time and

reduced startup time by a half-hour

• Negotiated a new gas supply contract

• Demineralized cooling tower water to

reduce water usage & maintenance costs

• Negotiated lower sewer charges with

the water district

• Reduced property insurance costs

We Scored a Touchdown for This SoCal Cogeneration Plant and Ice Complex Thermal Host

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Case study: Selkirk Cogenerating Plant

• Eased the client’s operating budget up front by

charging a much lower fee than our predecessor

• Found a new energy marketer for the client that

took a more strategic and innovative approach

• Began selling power into New England ISO:

better capacity pricing structure than New York

• Extracted maximum value from Selkirk’s gas

pipeline spur by marketing excess capacity

• Reduced staff headcount by eliminating

redundant positions

• Scrubbed the budget and optimized plant O&M

We Put an Upstate NY Cogenerator on a Path to Recovery in Less than Two Years

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The PurEnergy difference

• Client-first philosophy

- We put our clients’ interests first. Always.

- We understand that no two clients are alike. We are flexible and can tailor our services and

processes to meet client needs.

- We provide access to all resources within the company, especially senior leadership. We are

available 24/7 to address any issues and strategize about how to create value.

• Value-creation mindset

- Part of our DNA is about looking around the next corner, thinking about creative ways to

increase the value of our clients’ assets.

• Cost-effective

- Our existing platform---people, systems, tools---as well as our frugal nature, allows us to

manage facilities extremely cost-effectively.

• Unparalleled resources available

- Through our corporate parent, NAES Corporation, and its affiliates, we have access to

unparalleled resources in the power generation, industrial and related industries.

- Includes operations, technical and market consulting, construction and fabrication and

environmental, and regulatory compliance.

PurEnergy possesses a unique set of attributes and core values that sets us apart

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PurEnergy, LLC

4488 Onondaga Boulevard

Syracuse, NY 13219

315.448.2266

www.purenergyllc.com